NCSoft has posted their fourth quarter finances. Sales were hit with a 6% loss since the last quarter, with operating profit reportedly taking a 51% hit and net income down 42% since last quarter. NCSoft attributes the decline in sales and profits due to scaled back in-game item sales.
Year over year sales from 2011 compared to 2010 saw a similar drop in revenue by 7%, operating income by 24%, and income by 21%, due to what NCSoft refers to as a weakened user base, and an expansion in research and development. Labor costs increased 9%, marketing increased 25%, and variable expenses grew 7%.
You can see from the chart above that Lineage has continued its dip in sales, which NCSoft attributes to a lack of item sales in-game. Lineage II’s sales opened up somewhat, attributed in the release to “roust sales in Japan.” Aion saw a dip in sales of about 8%, as did Guild Wars (22%), and City of Heroes has shown a 22% increase in sales over Q3.
In terms of regional breakdown, Korea’s stake in NCSoft dived from 69% in Q3 to 60% in Q4. North America rose from 4% to 5% while Europe dipped from 3% to 2%. Japan almost doubled its share, from 12% to 21%, while Taiwan lowered its share from 3% down to 2%. Royalties increased to 10% from 8%.
City of Heroes and Lineage II went free to play recently, with Aion moving free to play in Europe.
(Source: NCSoft Finances)
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